Arch Resources Inc (ARCH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARCH - US03940R1077 - Common Stock
134.83 USD
+0.94 (+0.7%)
133.13 USD
-1.7 (-1.26%)
We assign a fundamental rating of 6 out of 10 to ARCH. ARCH was compared to 157 industry peers in the Metals & Mining industry. ARCH scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ARCH is cheap, but on the other hand it scores bad on growth. With these ratings, ARCH could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
ARCH had positive earnings in the past year.
ARCH had a positive operating cash flow in the past year.
Of the past 5 years ARCH 4 years were profitable.
In the past 5 years ARCH always reported a positive cash flow from operatings.
1.2 Ratios
ARCH has a better Return On Assets (7.57%) than 80.95% of its industry peers.
With an excellent Return On Equity value of 12.43%, ARCH belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
ARCH has a better Return On Invested Capital (8.85%) than 80.27% of its industry peers.
ARCH had an Average Return On Invested Capital over the past 3 years of 29.63%. This is significantly above the industry average of 10.29%.
The last Return On Invested Capital (8.85%) for ARCH is well below the 3 year average (29.63%), which needs to be investigated, but indicates that ARCH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 12.43% | ||
| ROIC | 8.85% |
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
1.3 Margins
ARCH has a Profit Margin of 6.69%. This is in the better half of the industry: ARCH outperforms 75.51% of its industry peers.
ARCH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.76%, ARCH is in the better half of the industry, outperforming 62.59% of the companies in the same industry.
ARCH's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 17.11%, ARCH perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
In the last couple of years the Gross Margin of ARCH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.76% | ||
| PM (TTM) | 6.69% | ||
| GM | 17.11% |
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ARCH is creating value.
Compared to 1 year ago, ARCH has more shares outstanding
The debt/assets ratio for ARCH has been reduced compared to a year ago.
2.2 Solvency
ARCH has an Altman-Z score of 4.29. This indicates that ARCH is financially healthy and has little risk of bankruptcy at the moment.
ARCH's Altman-Z score of 4.29 is fine compared to the rest of the industry. ARCH outperforms 65.99% of its industry peers.
ARCH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.61 | ||
| Altman-Z | 4.29 |
ROIC/WACC0.79
WACC11.21%
2.3 Liquidity
A Current Ratio of 2.01 indicates that ARCH has no problem at all paying its short term obligations.
ARCH has a Current ratio (2.01) which is comparable to the rest of the industry.
ARCH has a Quick Ratio of 1.41. This is a normal value and indicates that ARCH is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.41, ARCH is in line with its industry, outperforming 47.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
ARCH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.17%.
The Earnings Per Share has been growing by 12.55% on average over the past years. This is quite good.
ARCH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.03%.
The Revenue has been growing slightly by 5.11% on average over the past years.
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%
3.2 Future
ARCH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.93% yearly.
ARCH is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.19% yearly.
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.13 indicates a correct valuation of ARCH.
Based on the Price/Earnings ratio, ARCH is valued a bit cheaper than 79.59% of the companies in the same industry.
When comparing the Price/Earnings ratio of ARCH to the average of the S&P500 Index (26.60), we can say ARCH is valued rather cheaply.
The Price/Forward Earnings ratio is 6.77, which indicates a rather cheap valuation of ARCH.
Based on the Price/Forward Earnings ratio, ARCH is valued cheaper than 89.12% of the companies in the same industry.
ARCH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 6.77 |
4.2 Price Multiples
77.55% of the companies in the same industry are more expensive than ARCH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ARCH is valued cheaply inside the industry as 87.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.58 | ||
| EV/EBITDA | 6.26 |
4.3 Compensation for Growth
ARCH has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as ARCH's earnings are expected to decrease with -5.93% in the coming years.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
5. Dividend
5.1 Amount
ARCH has a yearly dividend return of 0.74%, which is pretty low.
Compared to an average industry Dividend Yield of 0.99, ARCH pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.74, ARCH pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
The dividend of ARCH is nicely growing with an annual growth rate of 47.85%!
ARCH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)47.85%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ARCH pays out 50.86% of its income as dividend. This is a bit on the high side, but may be sustainable.
ARCH's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP50.86%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
134.83
+0.94 (+0.7%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners99.38%
Inst Owner Change0%
Ins Owners2.44%
Ins Owner Change0%
Market Cap2.44B
Revenue(TTM)2.68B
Net Income(TTM)179.45M
Analysts76.67
Price Target168.3 (24.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend11.34
Dividend Growth(5Y)47.85%
DP50.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-64.92%
Min EPS beat(2)-78%
Max EPS beat(2)-51.83%
EPS beat(4)0
Avg EPS beat(4)-41.32%
Min EPS beat(4)-78%
Max EPS beat(4)-16.39%
EPS beat(8)1
Avg EPS beat(8)-25.89%
EPS beat(12)1
Avg EPS beat(12)-19.32%
EPS beat(16)2
Avg EPS beat(16)-17.53%
Revenue beat(2)2
Avg Revenue beat(2)4.61%
Min Revenue beat(2)3.07%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)7.09%
Min Revenue beat(4)3.07%
Max Revenue beat(4)11.78%
Revenue beat(8)8
Avg Revenue beat(8)8.31%
Revenue beat(12)12
Avg Revenue beat(12)10.33%
Revenue beat(16)16
Avg Revenue beat(16)11.04%
PT rev (1m)0%
PT rev (3m)-1.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-85.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-64.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-18.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 6.77 | ||
| P/S | 0.91 | ||
| P/FCF | 11.58 | ||
| P/OCF | 6.2 | ||
| P/B | 1.69 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 6.26 |
EPS(TTM)10.27
EY7.62%
EPS(NY)19.9
Fwd EY14.76%
FCF(TTM)11.65
FCFY8.64%
OCF(TTM)21.75
OCFY16.13%
SpS148.03
BVpS79.73
TBVpS79.73
PEG (NY)N/A
PEG (5Y)1.05
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 12.43% | ||
| ROCE | 10.52% | ||
| ROIC | 8.85% | ||
| ROICexc | 10.16% | ||
| ROICexgc | 10.16% | ||
| OM | 7.76% | ||
| PM (TTM) | 6.69% | ||
| GM | 17.11% | ||
| FCFM | 7.87% |
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
ROICexc(3y)35.22%
ROICexc(5y)N/A
ROICexgc(3y)35.22%
ROICexgc(5y)N/A
ROCE(3y)35.22%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y3.66%
ROICexc growth 3YN/A
ROICexc growth 5Y3.66%
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
F-Score5
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.61 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 117.1% | ||
| Cap/Sales | 6.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.14% | ||
| Profit Quality | 117.55% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 4.29 |
F-Score5
WACC11.21%
ROIC/WACC0.79
Cap/Depr(3y)152.13%
Cap/Depr(5y)186.24%
Cap/Sales(3y)7.16%
Cap/Sales(5y)10.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A
EBIT growth 1Y-66.72%
EBIT growth 3YN/A
EBIT growth 5Y13.72%
EBIT Next Year-51.62%
EBIT Next 3Y-1.76%
EBIT Next 5YN/A
FCF growth 1Y-79.58%
FCF growth 3YN/A
FCF growth 5Y7.3%
OCF growth 1Y-66.1%
OCF growth 3Y118.27%
OCF growth 5Y8.74%
Arch Resources Inc / ARCH FAQ
What is the fundamental rating for ARCH stock?
ChartMill assigns a fundamental rating of 6 / 10 to ARCH.
Can you provide the valuation status for Arch Resources Inc?
ChartMill assigns a valuation rating of 7 / 10 to Arch Resources Inc (ARCH). This can be considered as Undervalued.
How profitable is Arch Resources Inc (ARCH) stock?
Arch Resources Inc (ARCH) has a profitability rating of 8 / 10.
What are the PE and PB ratios of Arch Resources Inc (ARCH) stock?
The Price/Earnings (PE) ratio for Arch Resources Inc (ARCH) is 13.13 and the Price/Book (PB) ratio is 1.69.
How sustainable is the dividend of Arch Resources Inc (ARCH) stock?
The dividend rating of Arch Resources Inc (ARCH) is 3 / 10 and the dividend payout ratio is 50.86%.